AB Klaipedos Nafta (hereinafter – the Company) announces the interim condensed financial statements for the nine months period ended 30 September 2016.
AB Klaipedos Nafta sales revenues for the period between January – September of 2016 reached Eur 80.3 million; it has increased by 1.8 per cent compared to the same period of 2015 – Eur 78.9 million. The net profit of the Company for the 9 months of 2016 amounts to Eur 13.0 million and is lower by 0.8 per cent compared to the same period of 2015 – Eur 13.1 million. Profit before tax, interest, depreciation and amortization (EBITDA) for the 9 months of 2016 comprise Eur 24.3 million and is lower by 2.8 per cent, comparing to the same period of 2015 when it was Eur 25.0 million.
Management comment:
The Company‘s management commenting the preliminary financial results first of all notes that results of the Company’s activities have significantly increased. Despite the fact that in the 3rd quarter of 2016 the Company faced external factors challenges related to oil refinery limitations for the Byelorussian clients, oil products transhipment during the 3 quarters of 2016 comprised 5.7 million tons that is by 25 per cent more comparing to the same period in 2015. The increase in transhipment volumes was influenced by these factors:
- Increased oil product cargos of the main clients – Byelorussian refineries and AB ORLEN Lietuva;
- Professional work with the strategic partners;
- Effective management of the increased oil products cargos.
It must be noted that changed situation in the oil products transhipment market have modified the pricing of the services. And this is the main cause that revenues from oil products transhipment have not increased at the same level as transhipment volume.
LNG terminal regasification volume in the first 3 quarters of 2016 was 12.2 million MWh or by 3.3 times more comparing to the same period of 2015. According to the Company’s management LNG terminal results represent the market needs. This year more gas were imported via LNG terminal than via pipeline from Russia. Since 2014 after LNG terminal created alternative gas supply source for Lithuania, Latvia and Estonia gas prices in these countries correlate with the global gas prices. This is a great advantage in the Baltic region which has been dependent from the monopoly gas supplier.
It is important to mention that revenue level from the LNG terminal activity is calculated based on legal regulation as to the laws of the Republic of Lithuania so it is not sensitive for the activity volume changes.
AB Klaipedos nafta financial results for the 9 month of 2016 prove stable and effective performance of the Company. Despite the fact that activities of the Company have significantly increased, strategic oil terminal infrastructure projects are under construction, LNG reloading station is under construction and new projects related with LNG activities are initiated, the Company managed to control its costs and ensure high return for the shareholders. For the analyzed period the return on equity was 9.1 per cent that is by 1.7 percentage point more comparing to the same period of 2015.
Unaudited interim financial statements for the 9 months of 2016 and financial results presentation are enclosed.
Marius Pulkauninkas, Director of Finance and Administration Department, tel. 8 46 391763
